08.07.23
Identiv, Inc. reported its financial results for the second quarter ended June 30, 2023.
Second quarter 2023 revenue grew 6% year-over-year to $29.6 million, a fiscal second quarter record. Premises revenue grew 8% year-over-year to $11.9 million; Identity revenue grew 5% year-over-year to $17.7 million. Q2 2023 GAAP gross margin was 36.7%; non-GAAP gross margin grew to 38.2%.
Identiv began production at new facility in Bangkok, Thailand, expanding RFID manufacturing capacity and cost competitiveness to meet growing demand for IoT solutions. The company also completed Wiliot’s initial IoT Pixels order and began production of follow-on order. Non-recurring engineering (NRE) is strong at nearly 60 projects, with more than half focused on medical use cases.
Identiv also partnered with Asygn to introduce a battery-free metal sensor IoT device, enabling long-range product identification and condition monitoring in adverse industrial environments.
“Our second quarter results have kept us on track to meet our 2023 financial and operational expectations as we continue to deliver disciplined growth with a strong balance sheet,” said Identiv CEO Steven Humphreys. “In Q2, we strengthened our strategic position in both our IoT and Physical Security businesses while generating positive free cash flow and strong gross margins.
“In IoT, our Thailand facility is fully operational, and currently producing 5 million units a month. The new facility is on track to produce at an annual rate of 200 million units by the end of the year,” added Humphreys. “Medical and healthcare use cases made steady progress. The Bluetooth-enabled RFID category continues to strengthen. In Q2, we completed Wiliot’s initial IoT Pixels order and began production of the follow-on order, while continuing to support engagements with Bluetooth-enabled RFID solution providers. Chip availability has normalized, and we’ve added IC specialist Asygn as a partner for new sensor-based IoT solutions optimized for industrial applications.
“In Physical Security, demand for our comprehensive end-to-end Velocity platform remains strong, with wins in our major commercial verticals, in addition to our core Federal customer base. Several of our cloud-based access control and video solutions are now available on the FedRAMP marketplace, which we expect to facilitate adoption by Federal agency customers. We recently launched our Primis access control suite and EG2 edge gateway, a secure, affordable, and cloud-ready solution ideal for small- tomedium-sized organizations. Our recent investments in people and product have begun delivering results, and when combined with our continued emphasis on working capital and business model efficiency, we are confident in our ability to execute on our 2023 growth strategy.”
“Delivering disciplined growth continues to be our top focus for 2023, and we will continue to support strategic opportunities that drive revenue and margin expansion,” Identiv CFO Justin Scarpulla added. “We are also committed to strengthening our balance sheet and solidifying our working capital position. Our production facility in Thailand is now operational, and we expect there to be a positive impact on margins once the facility has reached full utilization. As we enter the second half of the fiscal year, with our current visibility we believe we are well-positioned to deliver on our current 2023 outlook.”
Second quarter 2023 revenue grew 6% year-over-year to $29.6 million, a fiscal second quarter record. Premises revenue grew 8% year-over-year to $11.9 million; Identity revenue grew 5% year-over-year to $17.7 million. Q2 2023 GAAP gross margin was 36.7%; non-GAAP gross margin grew to 38.2%.
Identiv began production at new facility in Bangkok, Thailand, expanding RFID manufacturing capacity and cost competitiveness to meet growing demand for IoT solutions. The company also completed Wiliot’s initial IoT Pixels order and began production of follow-on order. Non-recurring engineering (NRE) is strong at nearly 60 projects, with more than half focused on medical use cases.
Identiv also partnered with Asygn to introduce a battery-free metal sensor IoT device, enabling long-range product identification and condition monitoring in adverse industrial environments.
“Our second quarter results have kept us on track to meet our 2023 financial and operational expectations as we continue to deliver disciplined growth with a strong balance sheet,” said Identiv CEO Steven Humphreys. “In Q2, we strengthened our strategic position in both our IoT and Physical Security businesses while generating positive free cash flow and strong gross margins.
“In IoT, our Thailand facility is fully operational, and currently producing 5 million units a month. The new facility is on track to produce at an annual rate of 200 million units by the end of the year,” added Humphreys. “Medical and healthcare use cases made steady progress. The Bluetooth-enabled RFID category continues to strengthen. In Q2, we completed Wiliot’s initial IoT Pixels order and began production of the follow-on order, while continuing to support engagements with Bluetooth-enabled RFID solution providers. Chip availability has normalized, and we’ve added IC specialist Asygn as a partner for new sensor-based IoT solutions optimized for industrial applications.
“In Physical Security, demand for our comprehensive end-to-end Velocity platform remains strong, with wins in our major commercial verticals, in addition to our core Federal customer base. Several of our cloud-based access control and video solutions are now available on the FedRAMP marketplace, which we expect to facilitate adoption by Federal agency customers. We recently launched our Primis access control suite and EG2 edge gateway, a secure, affordable, and cloud-ready solution ideal for small- tomedium-sized organizations. Our recent investments in people and product have begun delivering results, and when combined with our continued emphasis on working capital and business model efficiency, we are confident in our ability to execute on our 2023 growth strategy.”
“Delivering disciplined growth continues to be our top focus for 2023, and we will continue to support strategic opportunities that drive revenue and margin expansion,” Identiv CFO Justin Scarpulla added. “We are also committed to strengthening our balance sheet and solidifying our working capital position. Our production facility in Thailand is now operational, and we expect there to be a positive impact on margins once the facility has reached full utilization. As we enter the second half of the fiscal year, with our current visibility we believe we are well-positioned to deliver on our current 2023 outlook.”